In today’s digital financial landscape, cryptocurrency tax reporting and management have become crucial. To navigate complex tax regulations and ensure compliance, cryptocurrency holders must meticulously track transactions, calculate capital gains, and understand their tax liability.
Choosing the right cryptocurrency tax software is key to a stress-free tax season. ZenLedger, an alternative to platforms like CoinTracking, offers a user-friendly solution that simplifies crypto tax compliance. It streamlines the process, helping users stay compliant with tax regulations and optimize their financial gains. In this piece, we’ll explore ZenLedger’s features, advantages over competitors like CoinTracking, and how it empowers users to take control of their cryptocurrency taxes.
Top 5 Reasons Why ZenLedger is the Best CoinTracking Alternative
1. Precision
When handling tax reporting, ZenLedger doesn’t just talk about precision; it lives and breathes it. Zenledger’s commitment to accuracy goes beyond mere words; it’s at the very heart of what we do.
A prime example of this dedication is ZenLedger’s audit trail report, an invaluable resource for both tax professionals and investors. This report provides a comprehensive overview of cryptocurrency transactions for a specific tax year, leaving no detail unchecked. It diligently records buy and sell orders, transfers, and all other crypto-related actions, resulting in precise and up-to-date tax calculations. Our aim is to simplify the complex world of cryptocurrency taxes while ensuring accuracy remains paramount.
This standout feature simplifies the process by consolidating and organizing all cryptocurrency transactions and performance data, providing a precise overview for tax filing. Whether you’re managing capital gains or optimizing tax liability through strategies like tax-loss harvesting, ZenLedger is an indispensable resource. It’s designed to help you maintain accuracy and tax compliance effortlessly.
In addition, the End-of-Year Valuation Report of ZenLedger delivers peace of mind by simplifying the review of all your transactions. This feature gives you a comprehensive transaction summary, enabling you to evaluate your tax liability and gain a holistic perspective of your holdings, exchanges, wallets, self-transfers, and more within a user-friendly spreadsheet.
When assessing the accuracy of ZenLedger in comparison to Contracking, ZenLedger holds the advantage. This is mainly because CoinTracking’s free plan lacks the capability for automatic imports from exchanges, which can lead to errors when carried out manually.
2. Customer Support
CoinTracking offers basic customer service options. To access CoinTracking’s customer support, you have two options at your disposal; (1) you can initiate contact by sending an email, and (2) you can opt to open a support ticket via the CoinTracking Support Desk for assistance with any inquiries or issues you may encounter while using their services.
At the same time, at ZenLedger, the dedication to providing exceptional customer support is unwavering. With the outstanding availability of assistance seven days a week, the commitment to responsiveness sets the platform apart. Zenledger prioritizes addressing your questions and concerns promptly, often responding within minutes to ensure you have the support you require.
To offer more comprehensive assistance, we present a range of scheduled support call options, catering to your needs. These calls, conducted by our expert support team, include a free 15-minute session and paid choices of 30 or 60 minutes. These invaluable sessions allow you to delve deeper into your queries and receive expert guidance when you need it most. ZenLedger is here to support you every step of the way!
3. Intuitive User Interface
ZenLedger takes pride in its user-friendly interface and the intuitive experience it offers. The software showcases a clean and well-organized dashboard that simplifies navigation through transactions and report generation and provides easy access to a range of features.
Cointracking’s user interface proves intricate, diminishing its user-friendliness. Navigating through the platform can be a daunting experience, especially for newcomers. The features and data presented in a cluttered manner can overwhelm users seeking a more streamlined experience. Additionally, the website’s layout adds to the confusion, requiring users to embark on searches for even the most rudimentary elements on the platform.
Generating a tax report on the platform involves a multi-step process that can be overwhelming, particularly for users new to the system. Users are required to navigate through a list of 11 accounting methods and choose from 35 filters, including options like donations, gifts, airdrops, and staking, among others. This complexity can lead to confusion and frustration, especially for those attempting to create their first tax report.
In cases where users encounter difficulties or confusion, reaching out to customer support is often the next step. However, the experience can become even more frustrating due to slow response times from customer support.
ZenLedger, on the other hand, streamlines the process with just three user-friendly steps:
1. Import your crypto transactions from the exchange
2. Review your crypto transactions
3. Download and file your crypto tax forms
These simplified steps make it easier for users to calculate their cryptocurrency taxes, reducing the time and effort required compared to CoinTracking’s more complicated process.
The platform is intentionally designed for simplicity, ensuring that users of all technical backgrounds can effectively manage their crypto tax responsibilities with ease. Whether you’re a seasoned professional or new to cryptocurrency taxation, ZenLedger provides an excellent alternative to CoinTracking, making the process straightforward and efficient.
4. Automated Processes
CoinTracking simplifies data import by connecting users’ accounts to major exchanges via API and automatically updating transaction history. The free plan doesn’t have the option of automatic tax report generation, which is a weak point for CoinTracking.
ZenLedger has a more comprehensive approach to automation. The platform has established an outstanding reputation in the cryptocurrency tax management space, simplifying the process for both individuals and tax professionals. This streamlined journey commences with the effortless integration of transaction data into ZenLedger, achievable through either CSV or API, ensuring a seamless calculation of cryptocurrency taxes. Subsequently, the software takes charge of automatic tax calculations, ensuring that calculating cryptocurrency taxes is a hassle-free endeavor. Retrieving tax forms and navigating the filing process are equally streamlined for user convenience.
Moreover, ZenLedger’s software facilitates the effortless expansion of your client base, accommodating those with diverse tax needs. This efficiency not only saves you time but also increases your income potential. With ZenLedger’s automation, the tax management process becomes seamless, solidifying its position as the preferred platform for cryptocurrency tax professionals.
ZenLedger provides users with three tax professional services. Firstly, there’s the Tax Pro Consultation priced at $275, which includes a 30-minute confidential session with a crypto tax expert to address queries and concerns. Secondly, the Tax Pro Prepared Plan – Single Year, available at $3,500 per year, involves professionals preparing your crypto tax return while optimizing your tax liability. Lastly, for those with multiple years of returns requiring filing or amendments, the Tax Pro Prepared Plan – Multi-Year, priced at $6,500 for two years, simplifies the process with assistance from tax professional partners.
5. Data Security and Encryption
ZenLedger upholds rigorous information security standards aligned with the SOC 2 Framework. Its proactive measures encompass independent audits, annual penetration testing, and well-defined roles, backed by mandatory training and confidentiality agreements. Background checks ensure a trustworthy workforce, while robust encryption, vulnerability scanning, and monitoring fortify cloud security. In addition, ZenLedger prioritizes business continuity through backups and maintains a vigilant incident response framework. A bounty program encourages security feedback, and access controls, including SSO, 2FA, and strong passwords, bolster protection. Regular reviews and risk assessments ensure ongoing security.
CoinTracking’s security measures include holding ISO/IEC 27001 certification to safeguard user data. Regular audits cover user data encryption and SSL encryption. The platform adheres to data protection regulations, conducts various audits, including API audits, and invests in team training. The certification extends to all processes related to cryptocurrency tracking and tax reporting, highlighting CoinTracking’s dedication to security and user data protection.
Both ZenLedger and CoinTracking prioritize user data security, but there are notable distinctions in their approaches:
ZenLedger’s Security Advantages:
1. Comprehensive Information Security Program: ZenLedger adheres to the SOC 2 Framework, showcasing a strong commitment to rigorous information security standards.
2. Third-Party Audits and Penetration Testing: ZenLedger undergoes annual third-party assessments and penetration testing, ensuring ongoing security compliance.
3. Security Awareness Training: Mandatory security awareness training for team members minimizes human-related security risks.
4. Background Checks: Conducting background checks on new hires enhances workforce security.
5. Cloud Security: ZenLedger’s services on AWS and GCP include robust encryption and proactive monitoring.
6. Business Continuity and Disaster Recovery: Data integrity and availability are ensured through backup services and monitoring systems.
7. Bounty Program: ZenLedger’s bounty program encourages security feedback, fostering collaboration with researchers.
8. Access Security: Strong access controls, including SSO, 2FA, and robust password policies, protect against unauthorized access.
9. Vendor and Risk Management: Annual risk assessments and systematic vendor risk management mitigate potential threats.
While CoinTracking employs certain security measures, ZenLedger’s emphasis on standardized frameworks, third-party audits, ongoing training, and proactive risk management establishes it as a robust choice for users valuing data safety and integrity.
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Head-to-Head Comparison
Transaction Importing and Tracking Capabilities
CoinTracking provides support for over 100 exchanges and 20 wallet imports, while ZenLedger surpasses this by accommodating transactions from over 500 exchanges. This means ZenLedger users can import transactions from a wider range of exchanges compared to CoinTracking, where transaction imports are limited to 100 exchanges.
Additionally, in Cointracking’s free package, the auto imports are not available, and users cannot generate tax reports automatically. These limitations can impact the ease of transaction imports and the overall user experience. Also, the limited exchange support constrains its functionality as an effective portfolio tracker.
Tax Optimization and Loss Harvesting Tools
A significant limitation of CoinTracking is its absence of Tax Loss Harvesting. This strategy can lower tax rates and reduce taxable income, with long-term investors gaining particular benefits due to lower tax rates on investments held for over a year.
This is where ZenLedger Shines. ZenLedger provides an automatic tax loss harvesting feature that identifies cryptocurrency and NFT holdings that have incurred losses since acquisition. This enables you to sell them and leverage these losses for tax reduction purposes. This valuable tool is indispensable for crypto investors aiming to minimize their tax liabilities and optimize their tax strategy.
Tax Form Generation
CoinTracking offers various annual tax reports, aligning with standards such as capital gains, FBAR, Form 8949, and the German Income Tax Act.
Comparatively, ZenLedger provides a comprehensive range of tax forms to cater to your cryptocurrency reporting requirements, including:
1. Crypto Income Report (IRS SCHEDULE 1)
2. Capital Gains and Losses Report (IRS SCHEDULE D)
3. Sales and Other Dispositions (IRS FORM 8949)
4. Mining and Staking Income Report
5. Audit Trail Report
6. Report on Year-End Valuation
7. Accountability Report
8. Cryptocurrency Gifting
ZenLedger’s diverse set of tax forms ensures you have the necessary tools to effectively manage your cryptocurrency tax reporting.
Integration with Tax Platforms
CoinTracking offers integration with TurboTax to facilitate streamlined tax filing. One drawback is its limited integration with just a single tool. Conversely, ZenLedger stands out, accounting for its seamless compatibility with well-known online tax platforms like TurboTax and TaxAct. This integration enables you to complete your tax filings for your entire portfolio, including cryptocurrency holdings, on a single platform. No more concerns about manual data input or potential errors; ZenLedger handles all the intricate aspects of tax preparation, simplifying the process for you.
Quality of customer support and overall user experience
Quality customer support and user experience are likely the weak points of CoinTracking. Slow customer support and a multitude of features without a clean UI can be overwhelming for crypto beginners.
ZenLedger goes the extra mile by offering on-demand customer service. This means that if you ever have questions regarding software usage or your tax-related inquiries, you have the convenience of reaching out to a tax professional for assistance.
In terms of user experience, ZenLedger stands out as an exceptional option, particularly for individuals new to the realm of cryptocurrency taxation and the broader crypto environment. Its user-friendly interface is noteworthy, but what truly distinguishes ZenLedger is its remarkable accessibility for beginners, positioning it as a top choice for those venturing into this intricate landscape.
Cost Analysis
| Feature | ZenLedger | Cointracking.info |
|---|---|---|
| Plan and Pricing | Free Plan ($0) | Free Plan ($0) |
| – Up to 25 Transactions | – Up to 200 Transactions | |
| – All Detailed Reports | – 5 MB per CSV file | |
| – Audit Report | – No auto imports & 2 manual imports | |
| – Tax Pro Access | – Limited (100 entries) | |
| – HIFO/FIFO/LIFO | – Supported formats: CSV, XLS, PDF, HTML | |
| – Unlimited Exchanges | – 2 Backups | |
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration | ||
| Plan and Pricing | Starter Plan ($49) | Pro Plan ($156) |
| – Up to 100 Transactions | – 3,500 Transactions | |
| – All Detailed Reports | – 20 MB per CSV file | |
| – DeFi / Staking / NFTs | – 5 auto imports each coin & unlimited manual imports | |
| – Tax Pro Access | – Supported formats: CSV, XLS, PDF, HTML | |
| – HIFO/FIFO/LIFO | – 5 Backups | |
| – Unlimited Exchanges | ||
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration | ||
| Plan and Pricing | Premium ($149) | Expert Plan ($240) |
| – Up to 5,000 Transactions | – Options for 20,000 Transactions for $239, 50,000 Transactions for $324, or 100,000 Transactions for $432. | |
| – All Detailed Reports | – 20 MB per CSV file | |
| – DeFi / Staking / NFTs | – 10 auto imports each coin & unlimited manual imports | |
| – 2 hours of premium support | – Supported formats: CSV, XLS, PDF, HTML | |
| – Audit Report | – 10 Backups | |
| – Tax Pro Access | ||
| – HIFO/FIFO/LIFO | ||
| – Unlimited Exchanges | ||
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration | ||
| Plan and Pricing | Platinum ($999) | Unlimited ($840) |
| – Up to 15,000 Transactions | – 200 MB per CSV file | |
| – All Detailed Reports | – 50 auto imports each coin | |
| – DeFi / Staking / NFTs | – Unlimited manual imports | |
| – 2 hours of premium support | – CSV, XLS, PDF, HTML, XML, JSON | |
| – Audit Report | – 20 Backups | |
| – Tax Pro Access | ||
| – HIFO/FIFO/LIFO | ||
| – Unlimited Exchanges | ||
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration |
When comparing the free plans of Cointracking.info and ZenLedger, it becomes clear that ZenLedger offers more value for cryptocurrency enthusiasts, particularly beginners:
1. Transaction Limit: ZenLedger’s free plan allows for up to 25 transactions, whereas Cointracking.info’s free plan supports up to 200 transactions. Even though CoinTracking offers more transactions, it doesn’t support auto import and automatic tax report generation in the free plan, which makes it tough for beginners to report taxes.
2. Features: ZenLedger’s free plan includes several essential features, such as detailed reports, audit reports, and access to a tax professional. Cointracking.info’s free plan lacks these features, providing fewer tools for users to effectively manage their cryptocurrency tax reporting.
3. DeFi, Staking, and NFT Support: ZenLedger’s free plan supports DeFi, Staking, and NFT transactions, which are becoming increasingly common in the cryptocurrency space. Cointracking.info’s free plan does not include support for these crucial aspects of the crypto ecosystem.
4. Integration with Tax Tools: ZenLedger offers TurboTax integration even in its free plan, making tax filing more convenient. Cointracking.info’s free plan does not provide such integration.
5. Tax Loss Harvesting: ZenLedger’s free plan includes tax loss harvesting, a feature that can help users minimize their tax liability. Cointracking.info’s free plan does not offer this valuable tool.
In-Depth Analysis of the Premium Plans
- Transaction Limits: Cointracking.info offers a range of transaction limits, but ZenLedger’s transaction limits are more clearly defined across its plans, making it easier for users to choose the plan that suits their needs.
- Features: Both Cointracking.info and ZenLedger offer robust features, including detailed reports, DeFi and NFT support, and integration with tax tools like TurboTax. However, ZenLedger’s plans include additional benefits like premium support, audit reports, tax loss harvesting, and FinCen/FBAR alerts, making it more comprehensive.
- User Support: ZenLedger’s Platinum Plan provides users with 2 hours of premium support, which is not specified in Cointracking.info’s plans. This support can be valuable for users who require assistance with complex tax matters.
- Integration: Both platforms offer TurboTax integration, simplifying the tax filing process. However, ZenLedger’s plans include additional features like audit reports and FinCen/FBAR alerts, which can be beneficial for tax compliance.
- Tax Loss Harvesting: ZenLedger’s plans include tax loss harvesting, a feature that Cointracking.info’s plans do not explicitly mention. Tax loss harvesting can help users optimize their tax liabilities.
Conclusion: ZenLedger, the Clear Winner
In the realm of cryptocurrency tax management, ZenLedger emerges as the undisputed champion. With its transparent and versatile pricing, comprehensive feature set, dedicated customer support, TurboTax integration, and a free plan that offers substantial value, ZenLedger caters to users of all levels, from beginners to seasoned investors. Its commitment to providing a user-friendly experience and robust tools, including support for DeFi, NFTs, and tax loss harvesting, sets it apart from Cointracking.info. When it comes to cryptocurrency tax compliance and reporting, ZenLedger is the clear winner, ensuring a smooth and confident journey for crypto investors while optimizing their tax liabilities.
